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asteroidblitz

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Posts posted by asteroidblitz

  1. 5f28f4fa43bb8_Screenshot2020-08-04at8_30_25AM.thumb.png.c110d876e8d7f8c60fd217f2e68771ce.png

     

    Front page of the KSA's English language newspaper this morning. 

     

    Another big financial backer of the £300 million ($390 million) bid for Newcastle United football club has come out in favor of a takeover led by Saudi Arabia’s Public Investment Fund.

    The Reuben brothers, multibillionaire businessmen who want to buy 10 per cent of the club, said on Monday they were “very disappointed” when the bid was withdrawn late last week after months of stalling by the Premier League in England.

    “We would welcome any resurrection of talks and progress with the Premier League and are aware that the Reuben brothers remain totally supportive of the deal should there be a way forward,” said a statement from their company, Arena Racing.

    The brothers’ renewed support for the deal will raise the pressure on Richard Masters, the Premier League chief executive, who has remained silent since the takeover offer was withdrawn last week.

    PIF made no secret of its disappointment and frustration that the Premier League — which has the duty to approve or reject a takeover of a member club  — has reached no decision since contracts were exchanged on the deal in April that would give the Saudi sovereign wealth fund 80 per cent of the 128-year-old club

    Amanda Staveley, the British financier who has been at the heart of the deal and would have bought the remaining 10 per cent, also wants to see the deal revived.

    The Reuben brothers, who already run two horseracing courses in the northeast of England, said: “We were planning on creating one of the premier sporting hubs in the UK, undertaking development work that is vital for the region and enjoying valuable synergies with the football club.

    “We continue to hope that those exciting plans are not in vain.”

     

     

  2. Long time lurker here, based in Middle East. I am not a dentist.

     

    A couple of theories of mine regarding the delay or possible cancellation of the takeover:

     

    1. As Kieron McGuire mentioned on a recent Price of Football podcast, Bein Sports, which is owned by the government of Qatar, pays in monthly instalments for its EPL broadcasting rights. Sky and BT pay yearly, and have shown flexibility with finding a solution. To get one over the Saudis, I wouldn't be surprised if Bein is trying to use their missed/pending payments for March, April and May as leverage to scupper the deal.

     

    2. The economy in KSA is getting a battering right now. Oil prices are rock bottom, and the kingdom has just increased VAT from 5% to 15%. While I understand that the sovereign wealth fund can of course afford the takeover, splashing the cash on overseas whims right now might not have the right PR impact locally.

     

    I hope I'm completely wrong on both of these.

     

     

  3. I bought about £200 worth of shares in Pearson Education (low risk - the market Beta is less than one). Chose them because I work in the same industry and they paid out fairly good dividends.

     

    My observations are this:

     

    1 - You can't make any real money through just a couple of hundred quid. Making any money at all, with any regularity, involves understanding the markets and industries that each company operates in. This is time consuming, and not worth it for the sort of money you'd make back on £200.

     

    2 - You can choose to play the long game, and buy shares with a view to holding onto them and earning dividends as the company appreciates over time. This is what I'm doing, and it's like holding the money in a savings account. How well you do depends on the company performance, but Pearson last year paid out on around 4%.

     

    3 - The people who do well have an algorithm that allows them to spread the risk while increasing their return. This requires a diverse portfolio, including very low risk assets like government bonds; it also means that you need to chose both high and low risk stocks, along with investments in companies that are opposed in terms of performance (i.e., the sorts of industries that benefit from the failure of each other, which protects you against one or the other failing).

     

    Anyway, long story short - only worth it if you're prepared to risk thousands. But there's very little risk in just punting a couple of hundred and getting a sense for how the market works.

     

     

    Their 52 week high is about 30% greater than their 52 week low, and they are somewhere in the middle of that range at the moment.

     

    I wouldn't call the publishing/education industry a safe bet... ITK alert ;)

  4. Interest is simply rebadged as 'profit' or 'mark up' in Islamic finance.

     

    I've got a current account, Visa card and car loan with Abu Dhabi Islamic Bank here in the UAE. 'Profit' charges are on a par with or lower than the interest I would pay with HSBC here in the UAE or back home, just packaged differently. However, I think it's the practice of Wonga charging mental interest rates that can seen as financially 'unislamic', with regards to the 'balance between moral and material requirement':

     

    http://www.adib.ae/understanding-islamic-banking-0

     

    For example, my car belongs to ADIB until I pay the last installment. If I sell it, I have to clear the loan before I can get the registration changed to the new owner. A pain, maybe, but prevents recklessness from the feckless.

     

    All in all, it's a lot more responsible and ethical than Wonga.

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